Measures like freezing state workers’ salaries and cutting funding to regional governments are aimed at reducing Italy’s deficit to 2.7 per cent of GDP in 2012. But critics claim the two year package will hit the poorest workers hardest and spare the rich.

“We will oppose this inside and outside parliament with demonstrations and strikes so that the costs of this crisis are paid by those who have caused it,” said opposition politician Antonio di Pietro.

There have already been pledges of industrial action, with Italy’s largest union announcing plans for a general strike next month.